Consumers worried over cement monopoly, high price

Consumers are worried over the high cost and non-availability of cement in the country, especially in Lagos State. They claimed that few cement manufacturing firms are monopolising cement production and the industry has been in the spotlight in recent time. The reason for this is not far-fetched. The recent introduction of newly packaged 42.5 grade packaged by Dangote Cement Plc, is attracting lots of reactions from the sector.

According to the manufacturers of the new cement grade, popularly called 3x by users, the new grade comes with new qualities which according to them, will bring about stronger structures and assist in reducing building collapse cases in the country.

Some stakeholders said the introduction of the 42.5 grade of cement has attracted call by many consumers for the ban of the traditional 32.5 grade. The major reason for this call, was the allegation that the 32.5 grade has been responsible for increase in the cases of building collapse in the country. They claimed that the 32.5 grade is of low quality and most have been adulterated.

Can this assertion be true? While Dangote Cement Plc believes that some cement manufacturers and importers deal in substandard cement, Standards Organisation of Nigeria (SON) stressed that there was no substandard cement in Nigeria, explaining that it was a matter of application of cement in practice.

The SON Director-General, Dr Joseph Odumodu, said the challenge was misapplication of the cement rather than the quality of cement that is used.

Odumodu explained that the argument that substandard cement were majorly responsible for increased cases of building collapse was neither here nor there as according to him, most building collapse were due to the wrong application of the cement.

The director-general further said that any nine inches block that is sold below N200 is substandard. While saying that cements were classified into three grades of 32.5, 42.5 and 52.5, with its own different application, Mr. Odumodu noted that misapplication occur when a builder uses a cement that should be used for building a house to construct bridges.

“When this happens, such structure is bound to collapse,” he said. The Managing Director of Dangote Cement, Devakumar Edwin, said the new product was seen as part of the company’s social responsibility towards protecting the consumers by offering them the best product of international standard with more features.

A cement dealer in Ibafo, Mr Sunday Ayodele told The Shopping Nation it is noteworthy to state that 32.5 is not a bad grade for cement, adding that it has served and will continue to serve many purposes. “However, the right type of cement must be used for the right type of construction. The advantage which the higher grade of cement has over the lower is that the higher (42.5) can perform most functions which the lower (32.5) can perform, but such is not obtainable when the reverse is the case. I have travelled far and wide and the practice is the same” he said.

The Managing Director/Chief Executive Officer, Heaven Homes, Mr Tayo Sonuga, lamented that the price of cement has not only become exorbitant but the commodity has also become difficult to find.

He said: “Cement is too important to be left to the vagaries of private or public monopoly. You cannot build without cement so the government cannot remain silent about this matter. It calls for urgent action.

“I really think the government should do something drastic and urgent about the cement market. In December 2013, a bag of cement sold for N1,650 but now it is selling for N2,200 per bag and yet we cannot even find it readily to buy, this is clearly not acceptable, so I would want the government to do something urgent about it,” he said.

Sonuga, who said Nigeria needs about 18million units to bridge deficit gap, said the easy availability and affordability of cement cannot be overemphasised.

“If the government at the federal and state levels are truly sincere and determined in their resolve to address the housing problems of Nigerians, this is how they can show it by making cement not only cheap and affordable but also easily available.

“The enabling environment should be created for manufacturers of cement to source easily the ingredients they need to produce cement. They should be encouraged so that they will in turn produce cheaper and more affordable cement product,” he added.

He said, it is also imperative for the decision makers to take a stand on the cement dispute, with a view of taking a decision that is in the best interest of Nigerians.

A builder, Mr. Kunle Awobodu, said the newly introduced 42.5 cement was not available in the location, saying most of the distributors’ claims in the last one week were that they have run out of stock, while awaiting new arrival.

Besides, he said high price of the new cement product in few spots where it was available has made many people to stick to the old cement grade. According to him, a 50kg of the 42.5 cement grade was selling for N2,700, while the 32.5 grade was selling for N2,300.

Besides, he bemoaned high prices of the products, saying by this period of the year when the raining season has set in, the expectation was that the product prices would fall due to low construction activities. Against the backdrop that many people should have shunned the use of 32.5 grade of cement for the high grade newly introduced, Awobodu said that there was nothing wrong with the former except that the latter’s fast setting and packaging.

A cement analyst in Lagos, Mr Musbau Razak said it is only appropriate and fair to all parties concerned, that we wait for an expeditious outcome of the technical committee meeting on the review of standards.

He said this will provide the country and all stakeholders with the right guidelines for sustained activity in Nigeria’s cement industry, keeping in mind, the overall well being of the economy and its people.

His words: “Let us first examine the issue of adulterated cement. The basic fact here is that adulteration is common with every good product but the fact still remains that no matter the cases of adulteration reported in a product, the genuine one still exists. Limiting the issue of adulteration to 32.5 grade of cement is just giving a dog bad name to hang it. Even the so called 42.5 grade is liable to adulteration.

“Those calling for the outright ban of 32.5 grade of cement are not students of history. The current beautiful bride, 42.5, is a new product which has just been introduced into the market. The logical argument therefore is that a grade of cement has been in existence before the 42.5 grade came in. The 32.5 grade has served and still serving manufacturers, builders and corporate organisations well. The greatest buildings in Nigeria like the Cocoa House, the NITEL building and other skyscrapers were constructed using this particular brand of cement. They never collapse!

“Coming to the grassroots level, this is the brand used in constructing most of our residential buildings which have stood the test of time till today. “Going back to history, increase cases of building collapse is not up to five years in Nigeria, yet buildings constructed with the 32.5 brand has been in existence for long.

“In essence, rather than laying the blame of building collapse at the doorstep of the so called inferior quality of 32.5 grade of cement, stakeholders should examine deeper, the major reasons for building collapse in the country.

“Calling for the outright ban of the 32.5 range of cement has a whole negative multiplier effects on the economy. An economy that wants to grow and still growing will not throw its manufacturing companies out of business because this is what will happen to manufacturers of this range of product.

“Another negative effect of this is unemployment. Of course, nobody needs the wisdom of Solomon to know that if a product is outlawed, the manufacturers of such product close shops and throw their workers into the labour market.

“Perhaps, the greatest negative effect will be creating a monopoly of a particular product leaving the consuming public at the mercy of the Shylock manufacturer.”

He said creating a monopoly of cement production is not good for the country. It is anti-democracy where right to make choice is a major ingredient.

“Rather than calling for the outright ban of 32.5 brand of cement, the supervising agencies should increase their quality control strategies to ensure that the product and the so called 42.5 brands do not lose their qualities,” he said.